By Alexander Miller, consultant in energy markets. Eurasia Business News, March 18, 2026. Article n°2051
Tungsten prices have surged about 557% over the past year to roughly 2,250 dollars per metric ton unit on the main European benchmark, hitting record highs and vastly outpacing other metals.
What is happening to prices
Benchmark ammonium paratungstate (APT) prices in Europe are around 2,250 dollars per metric ton unit, up roughly six‑fold from early 2025 levels.
This 557% rally is described by analysts as a “never seen in 12 years” type of move and has turned a normally obscure industrial metal into one of the best‑performing commodities globally.
Main drivers of the spike
Chinese export controls: Beijing added certain tungsten products to its export control list in early 2025 as part of a trade dispute with the US, sharply reducing available seaborne supply and triggering the initial leg of the rally.
War and military demand: Ongoing conflict in Ukraine and in the Middle East and the broader US–Iran confrontation have boosted demand for tungsten‑intensive munitions (armor‑piercing shells, missiles, and drones), rapidly draining inventories.
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Semiconductor and tech uses: Rising demand from chipmaking and high‑end manufacturing adds another structural pull on supplies, reinforcing the price squeeze.
Why tungsten is so exposed to war
Tungsten is extremely dense and heat‑resistant, making it vital in armor‑piercing ammunition, penetrator cores, guidance systems, and drone parts, so modern high‑intensity warfare consumes large volumes.
The Middle East conflict has led governments to stockpile tungsten to secure defense supply chains, further removing material from the open market and amplifying the price shock.
Supply constraints and outlook
China dominates global primary tungsten supply, so its export limits leave Western buyers scrambling for alternative sources in places like Korea, Spain, Brazil, Australia, and the US.
New mines and expansions are underway (for example, projects in Korea and planned US production for ammunition), but industry executives warn it will likely take up to two years for additional capacity to meaningfully ease the shortage.
Because tungsten is not traded on major exchanges and the market is small and illiquid, prices are more volatile, and some analysts say there is no clear “ceiling” yet as long as war‑driven demand and export limits persist.
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© Copyright 2026 – Eurasia Business News. Article no. 2051
Eurasia Business News 